Most lenders allow one to three payment deferrals per loan, but the exact number depends on your contract and lender
The number of times you can defer a car payment is set by your lender and written into your loan agreement. Most traditional auto lenders — including banks, credit unions, and captive finance companies like Ford Credit or GM Financial — permit between one and three deferrals over the life of the loan. Some lenders cap deferrals at one per year; others allow them only once total. A few lenders have no stated limit but reserve the right to deny a deferral request based on your payment history or account status.
Deferral is not the same as skipping a payment. When you defer, the lender moves your missed payment to the end of the loan, extending your payoff date and adding interest. You are not forgiven the payment — you are postponing it. This matters because each deferral costs you money in additional interest and a longer loan term, and most lenders track deferrals to prevent abuse.
Key Takeaways
- Your loan agreement specifies how many deferrals you are allowed; one to three is typical, but some lenders permit only one per year or one total.
- A deferral moves your payment to the end of the loan and adds interest — it does not erase the payment or reduce what you owe.
- Lenders track deferrals and may deny future requests if you have already used your allotment or if your account is in default.
- Requesting a deferral before you miss a payment protects your credit score better than missing the payment and asking afterward.
- If your lender denies a deferral, forbearance or loan modification may be available as alternatives, though terms vary widely.
Where the deferral limit is written
The number of permitted deferrals appears in your loan agreement, usually in a section titled "Payment Options," "Deferral," or "Loan Modification." If you have the original paperwork, search for the word "defer" or "deferment." If you do not have it, contact your lender's customer service line — the number is on your monthly statement — and ask directly: "How many payment deferrals am I allowed under my loan?"
Some lenders also post this information in your online account portal. Log in and look for a section on payment options or account settings. If the information is not visible, a phone call is the fastest way to get a definitive answer. Write down the name of the representative you speak with and the date, in case you need to reference the conversation later.
Why lenders set a limit
Lenders restrict deferrals to protect themselves from loans that spiral into default. Each deferral extends the loan term, which increases the lender's risk — the longer you owe, the more time something can go wrong. Deferrals also signal financial stress, and lenders use the number of deferrals as a warning sign. A borrower who has already deferred twice is statistically more likely to default than one who has never deferred.
From a regulatory standpoint, lenders must also comply with rules around loan modifications. The Consumer Financial Protection Bureau and state banking regulators expect lenders to offer relief options, but they also expect lenders to verify that relief is sustainable. Allowing unlimited deferrals would look like the lender is not assessing whether you can actually afford the loan, which invites regulatory scrutiny.
What happens when you request a deferral
Contact your lender before your payment is due, not after. Most lenders have a dedicated phone line or online portal for payment information requests. You will typically need to provide your loan number, the reason for the request (job loss, medical emergency, temporary income reduction), and proof of hardship if the amount is significant. Some lenders ask for recent pay stubs or bank statements.
The lender will review your account and either approve or deny the request. Approval usually comes within one to three business days. If approved, you will receive written confirmation stating the deferred payment amount, the new due date, and any interest that will accrue. Keep this confirmation — it proves you did not miss a payment, which matters for your credit report.
If denied, ask why. Common reasons include: you have already used your allotment of deferrals, your account is already in default, or your income does not support deferral (meaning the lender believes you cannot afford the loan at all). If the denial is because you have exhausted deferrals, ask whether forbearance or a loan modification is available instead.
How deferrals affect your credit score
A deferred payment does not appear as a missed payment on your credit report if you request the deferral before the payment is due and the lender approves it. Your credit score is not harmed. However, if you miss the payment first and then ask for a deferral, the missed payment may already be reported to the credit bureaus, and the deferral will not erase it.
The deferral itself does not build credit, but it prevents damage. The trade-off is that you pay more interest over the life of the loan because the loan term is extended. If you defer once, the impact is usually small — a few extra dollars in interest and a month or two added to your payoff date. If you defer multiple times, the cost compounds.
What to do if you have used all your deferrals
If your lender denies a deferral because you have already used your allotment, ask about forbearance or loan modification. These are different tools with different rules.
Forbearance temporarily reduces or pauses your payment, usually for three to six months. It is typically offered once per loan and is meant for short-term hardship. Like deferral, the missed payments are added to the end of the loan with interest. Forbearance is often easier to get than a deferral because lenders see it as a one-time safety valve.
Loan modification changes the terms of the loan itself — extending the term, lowering the interest rate, or both. This is a more permanent solution and is usually offered only if you are already behind on payments or at serious risk of default. Modification requires more documentation and takes longer to process, but it can lower your monthly payment substantially.
If your lender offers neither deferral, forbearance, nor modification, you have limited options. Some credit unions and community banks are more flexible than large national lenders. If you are struggling, contact a nonprofit credit counselor through the National Foundation for Credit Counseling (NFCC) — they can sometimes negotiate with your lender on your behalf.
How to track your deferrals
Keep a record of every deferral you request and receive. Save the approval letter or email from your lender, and note the date and the name of the representative who approved it. If your lender later claims you have not used a deferral when you have, this documentation protects you.
Also track how many deferrals you have left. If your agreement allows three total and you have used two, you have one remaining. Before requesting your third, think about whether you might need it later. If your financial situation is improving, it may be worth waiting. If it is getting worse, use the deferral now and start exploring forbearance or modification options.
Frequently Asked Questions
Can I defer a payment if I am already late?
It depends on how late you are. If you are one or two days late, most lenders will still process a deferral request. If you are more than 30 days late, the lender may refuse and require you to bring the account current first. Once an account is reported as delinquent to the credit bureaus, a deferral cannot undo that damage, though it can prevent further damage.
Do deferrals count toward my credit history?
No. A deferred payment does not appear on your credit report as a positive or negative mark — it straightforward does not appear. Your payment history shows on-time payments, late payments, and defaults, but not deferrals. The benefit of deferral is that it prevents a late payment from being reported in the first place.
What if my lender will not tell me how many deferrals I have left?
Ask for the specific section of your loan agreement that addresses deferrals. If the lender cannot or will not provide it, request the full loan agreement in writing. You have the right to see the terms you agreed to. If the lender still refuses, file a complaint with your state's banking regulator or the Consumer Financial Protection Bureau.
Can I defer a payment on a lease instead of a loan?
Leases are handled differently than loans. Most lease agreements do not allow deferrals because you do not own the vehicle — the lessor does. However, some leasing companies offer hardship programs similar to deferrals. Contact your leasing company directly to ask what options are available if you cannot make a payment.
If I defer now, can I defer again next month?
Not usually. Most lenders require a waiting period between deferrals — typically three to six months. If you defer in January, you may not be able to defer again until April or July. Some lenders allow deferrals only once per 12-month period. Check your loan agreement or ask your lender about the waiting period before you request a deferral.